When does a higher wage rate lead to an increase in the number of work hours supplied by laborers?
a. Always.
b. When the substitution effect outweighs the income effect.
c. When the income effect outweighs the substitution effect.
d. Never.
b. When the substitution effect outweighs the income effect.
Economics
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If a company pays a dividend of $5 to be received one year from now, dividends are expected to grow at a rate of 8 percent per year for the indefinite future, and the interest rate is 14 percent, the price of the company's stock should be ________
per share. A) $8.00 B) $83.33 C) $227.27 D) $610.00
Economics
The government imposing a minimum wage is an example of an attempt to:
A. correct a market failure. B. redistribute surplus in a market. C. encourage the consumption of inferior goods. D. discourage the consumption of inferior goods.
Economics